Engraved Awards, Inc. uses a job order cost system for determining the cost to manufacture award products
Question:
Each plaque has a brass plate engraved with the name of the participant. Engraving requires approximately 10 minutes per name. Improperly engraved names must be redone. The plate is screwed to a walnut backboard. This assembly takes approximately 5 minutes per unit. Improper assembly must be redone using a new walnut backboard.
During the first half of the year, the university had two separate executive education classes. The job cost sheets for the two separate jobs indicated the following information:
a. Why did the cost per plaque increase from $13.90 to $16.68?
b. What improvements would you recommend for Engraved Awards,Inc.?
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Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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